Podcasts > The Daily > The Sunday Read: ‘How Cheerleading Became So Acrobatic, Dangerous and Popular’

The Sunday Read: ‘How Cheerleading Became So Acrobatic, Dangerous and Popular’

By The New York Times

In this episode of The Daily, the rise and dominance of Varsity Spirit, a cheerleading empire, is explored. From its beginnings as a small cheer camp provider, Varsity grew into a near-monopoly through acquisitions, exclusive venue contracts, and influence over governing bodies. The episode delves into the company's alleged anti-competitive tactics to limit rivals, resulting in soaring costs for families involved in competitive cheerleading.

It also examines the safety and well-being issues plaguing the sport, with high injury rates and allegations of mishandling sexual abuse cases by governing bodies tied to Varsity. The intense demands and substantial financial burden on families participating in competitive cheer are brought to light as well.

Listen to the original

The Sunday Read: ‘How Cheerleading Became So Acrobatic, Dangerous and Popular’

This is a preview of the Shortform summary of the Nov 17, 2024 episode of the The Daily

Sign up for Shortform to access the whole episode summary along with additional materials like counterarguments and context.

The Sunday Read: ‘How Cheerleading Became So Acrobatic, Dangerous and Popular’

1-Page Summary

The rise and dominance of Varsity Spirit

Jeff Webb founded Varsity Spirit in 1974 after leaving the National Cheerleaders Association (NCA).

Varsity Spirit grew from a small cheer camp provider into a sprawling cheerleading empire over four decades. According to David Gauvey Herbert, Webb built the company through innovations like televising cheer competitions on ESPN and creating the "All-Star" category of competitive cheerleading.

Varsity Spirit's market dominance increased through acquisitions and influence over governing bodies.

Varsity reinforced its leading position by acquiring rivals like Jam Brands and NCA. It also founded the United States All Star Federation (USASF), which was financially tied to Varsity, and secured exclusive venue contracts, expanding its control over the all-star cheer market.

Varsity's monopolistic business practices

Varsity engaged in anti-competitive tactics to limit rivals.

Varsity has faced accusations of monopolistic behavior. According to Herbert, it staged "attack events" to undermine competitors, offered lucrative loyalty rebates to gyms, and used its influence over venues and governing bodies like USASF to restrict rivals' access.

Varsity's dominance allowed it to significantly raise prices for families.

With limited competition, Varsity increased costs for parents, with some estimates exceeding $10,000 annually per child for expenses like fees, uniforms, and travel.

Varsity squeezed independent producers and gyms, pushing many to sell or rely on rebates.

Smaller event producers struggled against Varsity's market power. Gym owners, fearing lost rebates, were discouraged from seeking alternatives, though internal Varsity memos revealed concern over its monopolistic image.

Critics have compared Varsity's control to historical monopolies like Standard Oil.

Some likened Varsity's founder Jeff Webb to John D. Rockefeller for attempting to monopolize cheerleading. Critics also alleged that Varsity's profit motives impeded efforts to protect athletes from issues like sexual abuse.

Safety and wellbeing issues in cheerleading

Cheerleading has high rates of catastrophic injuries, yet governing bodies dismissed concerns.

The sport accounts for more severe female athlete injuries than any other. However, Varsity and the USASF were often accused of ignoring safety issues like the extremely high injury rates for "flyers."

Varsity and USASF faced a sexual abuse scandal similar to USA Gymnastics.

Multiple lawsuits alleged the USASF failed to properly address sexual abuse reports and ostracized complaining families. This echoed the USA Gymnastics scandal in which governing bodies were accused of mishandling abuse cases.

The demands of competitive cheer lead some families to extreme financial measures.

According to Herbert, some families resorted to selling blood plasma to cover the substantial costs of competitive cheerleading, highlighting the economic strain the sport places on participants.

1-Page Summary

Additional Materials

Counterarguments

  • Varsity Spirit's growth and market dominance could be seen as a result of successful entrepreneurship and innovation within the cheerleading industry, rather than solely through anti-competitive practices.
  • The acquisitions made by Varsity Spirit, such as those of Jam Brands and NCA, could be defended as standard business practices aimed at growth and improving services, rather than purely to eliminate competition.
  • The founding of the United States All Star Federation (USASF) by Varsity could be argued as an effort to standardize and improve the sport of cheerleading, which may have benefited the industry as a whole.
  • The increase in costs for families participating in cheerleading could be attributed to the rising costs of hosting large-scale events, improving safety standards, and providing a more professional experience for participants.
  • The comparison to historical monopolies like Standard Oil might be considered an exaggeration, as the cheerleading industry is a niche market and Varsity's business practices may not have the same broad economic impact.
  • The high rates of catastrophic injuries in cheerleading could be contextualized by the inherent risks associated with any athletic sport, and it could be argued that governing bodies like Varsity and USASF have made efforts to improve safety standards over time.
  • The sexual abuse scandal, while serious, may not be directly attributable to the actions or inactions of Varsity or USASF, as these issues are complex and systemic within many sports organizations.
  • The financial strain on families participating in competitive cheer could be seen as a reflection of the high costs associated with competitive sports in general, and not unique to cheerleading or the result of Varsity's pricing alone.

Actionables

  • You can research alternative cheer organizations to support diversity in the industry and reduce the impact of monopolistic practices. By looking into and participating in events hosted by smaller organizations, you contribute to a more competitive market and help prevent any single entity from gaining too much control.
  • Encourage safety and accountability in cheerleading by advocating for independent safety audits of programs or gyms your family is involved with. This can be done by requesting safety records, asking about coach certifications, and ensuring that the program has clear protocols for injury prevention and response.
  • Mitigate the financial strain of competitive cheer by creating a community exchange platform for cheer-related expenses. This could involve setting up a local group for swapping uniforms, sharing travel costs, or organizing fundraisers to help families afford participation without resorting to extreme measures.

Get access to the context and additional materials

So you can understand the full picture and form your own opinion.
Get access for free
The Sunday Read: ‘How Cheerleading Became So Acrobatic, Dangerous and Popular’

The rise and dominance of Varsity Spirit as a cheerleading company

Varsity Spirit, a Memphis-based company, has transformed from a small cheer camp provider into a sprawling cheerleading empire. Founded by Jeff Webb, the company now dominates nearly every aspect of the sport in the United States.

Varsity Spirit was founded by Jeff Webb, who built the company from a small cheer camp provider into a sprawling cheerleading empire over the course of four decades.

Jeff Webb started his journey with cheerleading as a general manager of the National Cheerleaders Association (NCA) at the age of 23, after having worked with the organization’s founder, Lawrence Herkimer, the "father of modern cheerleading." Later, dissatisfied with NCA's traditional approach, Webb left and founded the Universal Cheerleaders Association (UCA) in 1974.

Webb started the Universal Cheerleaders Association in 1974 after breaking off from the National Cheerleaders Association founded by Lawrence Herkimer, the "father of modern cheerleading."

Webb took 20 of Herkimer’s top instructors to start UCA with ambitions to innovate the cheerleading industry. Despite Herkimer having once seen Webb as a potential successor and expressing great faith in him, Webb's departure was a point of contention, with Carolyn Herkimer, Lawrence’s daughter, feeling betrayed.

Webb grew Varsity Spirit through innovations like televising cheer competitions on ESPN, creating the "All-Star" category of competitive cheerleading, and expanding into cheer apparel and event production.

In a significant move in 1984, Webb made a deal with ESPN to televise cheer championships, which increased cheerleading’s visibility across 34 million American homes. Webb then introduced the "All Star Cheer" category, establishing cheerleading as a competitive main event with year-round opportunities, rather than a sideline activity.

Varsity Spirit expanded further with the creation of a uniform division, extended its reach through camps and competitions, and went public in 1992 with remarkable annual revenue. Dennis Worley, a longtime Varsity employee, contributed to developing the All Star market, ensuring divisions were available so all children could participate.

In the 1990s, Varsity saw its revenues quintupling, and the company's influence became so great that Webb's presence was often described as imperial, highlighted by the use of a private jet aptly named "Cheer Force One."

Varsity Spirit's market dominance increased through acquisitions of rival companies and the creation of governing bodies like the United States All Star Federation (USASF) that were financially tied to Varsity.

Varsity’s dominance is also evidenced by its aggressive expansion strategy, which included the acquisition of competitors. Notably, after struggling to compete due to Varsity's exclusiv ...

Here’s what you’ll find in our full summary

Registered users get access to the Full Podcast Summary and Additional Materials. It’s easy and free!
Start your free trial today

The rise and dominance of Varsity Spirit as a cheerleading company

Additional Materials

Counterarguments

  • Varsity Spirit's market dominance could stifle competition, potentially leading to less innovation and higher prices for consumers.
  • The creation of governing bodies like the USASF that are financially tied to Varsity could present conflicts of interest, potentially prioritizing Varsity's interests over the fair regulation of the sport.
  • The aggressive acquisition strategy of Varsity Spirit might reduce diversity within the cheerleading industry, which could limit choices for cheer athletes and consumers.
  • The reliance on private equity funding and the focus on aggressive expansion could lead to prioritizing profit over the well-being of athletes and the integrity of the sport.
  • The quintupling of revenues and expansion into various sectors of the industry might suggest a focus on commercialization that could detract from the sport's original spirit and community-oriented aspects.
  • The use of exclusivity arrangements with venues and loyalty bonuses to gym owners by Varsit ...

Actionables

  • You can analyze the growth strategies of successful companies in your field of interest to identify patterns you might emulate. For instance, if you're passionate about a particular hobby or industry, look at how leaders in that space have expanded their reach through innovation, acquisitions, or partnerships. This could involve reading case studies, following industry news, or even reaching out to local business owners for insights.
  • Consider starting a small-scale side project or business that aligns with your interests, using grassroots marketing techniques to build a community. This could be as simple as creating custom merchandise for a local sports team or organizing small events that cater to a niche audience. The key is to start small, learn from the process, and gradually scale up as you gain confidence and experience.
  • Explore opportunities to collaborate wit ...

Get access to the context and additional materials

So you can understand the full picture and form your own opinion.
Get access for free
The Sunday Read: ‘How Cheerleading Became So Acrobatic, Dangerous and Popular’

Varsity's monopolistic business practices and their effects on the sport

Varsity’s business practices have been compared to historical monopolies due to its extensive market control and influence over the competitive cheer industry.

Varsity engaged in anti-competitive tactics like scheduling "attack events" to undermine competitors, offering generous loyalty rebates to gym owners, and using its control over event venues and governing bodies to limit rivals' access to the market.

In 2003, after Jamie Parrish and coaches formed a group to standardize cheerleading rules, Varsity quickly established the United States All Star Federation (USASF) with a $1.8 million interest-free line of credit and required gym memberships to compete at its events. Some USASF staff were Varsity employees who volunteered their time. Varsity also created USA Cheer and became a corporate partner with the National Federation of State High School Associations, influencing high school cheer rules.

Varsity has faced accusations of monopolistic behavior, such as building a juggernaut that inflated prices and edged out competitors. For instance, it staged attack events in the same cities on the same dates as competitors’ events, limiting rival event producers’ venue options through exclusive contracts, and offering rebates to gyms to enforce loyalty. Herbert found Varsity’s control and critics called it a monopoly with hardball tactics.

Varsity's market power allowed it to significantly raise prices for families participating in competitive cheerleading, with some estimates of over $10,000 per child annually.

Parents have reported annual costs upward of $10,000 per child for competitive cheer, including competition fees, uniforms, plane tickets, hotels, and meals. After acquiring companies like Jam Brands, Varsity increased event fees by more than 40%. Varsity’s acquisitions continued, but maintained the brands to obscure the money it drew from parents. The company generates hundreds of millions of dollars in annual revenue with high profit margins and has not been meaningfully challenged by lawsuits and controversies even though these have alleged that Varsity eliminated some competitions to direct teams towards more expensive Varsity events.

The company's business practices squeezed independent event producers and gym owners, pushing many to sell to Varsity or rely on its lucrative rebate programs.

Varsity’s control of the market pressured smaller event producers, especially with the creation of The Summit, a Varsity-run event that generated significant revenue. Independent event producers felt thwarted by Varsity’s influence on the USASF and struggled against Varsity’s market power. Gym owners, reliant on rebates for loyalty, feared losing them, which discouraged competition. However, internal Varsity memos and employee comments revealed concern over the company's ...

Here’s what you’ll find in our full summary

Registered users get access to the Full Podcast Summary and Additional Materials. It’s easy and free!
Start your free trial today

Varsity's monopolistic business practices and their effects on the sport

Additional Materials

Counterarguments

  • Varsity's establishment of the USASF could be seen as an effort to standardize and professionalize the sport, which could benefit athletes and participants by providing clear rules and guidelines.
  • The creation of USA Cheer and partnership with the National Federation of State High School Associations might be aimed at promoting safety and uniformity in cheerleading, which could be in the best interest of the athletes.
  • The high costs associated with competitive cheerleading, including competition fees and travel expenses, might reflect the high costs of organizing large-scale, professional events and not solely the result of monopolistic pricing.
  • Varsity's acquisition of other companies and maintenance of their brands could be a common business practice aimed at diversifying their portfolio and offering a range of products and services to consumers.
  • Loyalty rebates offered to gyms could be interpreted as volume discounts, which are common in many industries and can benefit loyal customers.
  • The company's profitability and high revenue might be attributed to successful business strategies and providing services that are in high demand, rather than solely to anti-competitive practices.
  • The legal settlements and changes made by Varsity in response to lawsuits could indicate a willingness to address concerns and comply with legal and ethical standards.
  • The comparison to historical monopolies like Standard Oil may not take into account the differences in industry, scale, and ...

Actionables

  • You can educate yourself on antitrust laws to better understand market dynamics and consumer rights by reading resources from the Federal Trade Commission or the Department of Justice. This knowledge can help you recognize potentially monopolistic behaviors in various industries and make more informed decisions as a consumer, such as choosing to support smaller businesses or advocating for fair trade practices.
  • Start a consumer diary to track your spending on activities or products in industries that seem to have dominant players. Note down prices, alternatives, and any loyalty incentives you encounter. Over time, this record can reveal patterns in pricing and competition, and you might decide to alter your spending habits to support more competitive market practices or share your findings with consumer advocacy groups.
  • Encourage transparency by asking direct questions about pricing and company affiliation ...

Get access to the context and additional materials

So you can understand the full picture and form your own opinion.
Get access for free
The Sunday Read: ‘How Cheerleading Became So Acrobatic, Dangerous and Popular’

The safety and wellbeing issues facing cheerleaders, including injuries and abuse

Cheerleading poses significant safety and wellbeing risks, from catastrophic injuries to incidents of abuse, with the sport’s governing bodies under scrutiny for their responses to these issues.

Cheerleaders like Nikki Jennings suffered multiple concussions and other serious injuries, sometimes facing pressure from coaches to keep competing despite their injuries.

Nikki Jennings retired from cheerleading due to acute health issues stemming from multiple concussions and a serious head injury sustained in a basket toss. Her retirement followed a chronic hip injury and enduring headaches named "stingers." Jennings' experiences underscore the high rate of catastrophic injuries in the sport and highlight the enormous pressure cheerleaders often face to perform regardless of their injuries.

According to the National Center for Catastrophic Sport Injury Research, cheerleading accounted for more catastrophic injuries to female athletes than any other high school and college sports combined over the past 40 years. Emergency visits for cheerleaders soared nearly 500% from 1980 to 2001. Moreover, flyers, the girls tossed into the air, have an extremely high injury rate, with Dr. Robert Cantu commenting that being a flyer is the riskiest position in all of women's sport.

Varsity and the USASF were accused of ignoring or mishandling reports of sexual abuse by coaches, resulting in a major scandal with parallels to the USA Gymnastics case.

Varsity and the U.S. All Star Federation (USASF) have been caught up in a sexual abuse scandal with disturbing similarities to the USA Gymnastics case. Herbert reveals that governing bodies like the USASF, founded by Varsity, have been accused of failing to comprehensively track and ban problematic coaches, such as Scott Foster who was sometimes visibly intoxicated. Despite Foster's suspension and subsequent investigation for sexually abusing a girl, photos indicate that violations were not always taken seriously.

Susan Crumpton, a former Varsity spokeswoman, commented that the USASF took appropriate actions based on the information available at the time, which did not include allegations of sexual misconduct. However, a USA Today investigative series found that nearly 180 individuals connected to cheerleading and sexual misconduct, were not barred by the USASF and USA Cheer. The reporting process for abuse was complex, and cheerleaders required assistance to navigate it, pointing to a broader issue with abuse in the sport.

Following the scandal involving Jerry Harris from "Che ...

Here’s what you’ll find in our full summary

Registered users get access to the Full Podcast Summary and Additional Materials. It’s easy and free!
Start your free trial today

The safety and wellbeing issues facing cheerleaders, including injuries and abuse

Additional Materials

Counterarguments

  • Cheerleading organizations have implemented safety measures and protocols to reduce the risk of injuries, and the sport has become safer over time due to these efforts.
  • Not all cheerleading squads or coaches pressure athletes to compete when injured, and many prioritize the health and safety of their participants.
  • Comparing injury rates across sports can be misleading without considering the number of participants and the nature of the activities involved.
  • The USASF and other governing bodies have taken steps to improve the reporting and handling of abuse allegations, including implementing background checks and educational programs.
  • The reduction in stigma and fear around reporting abuse in cheerleading indicates progress in creating a safer environment for athletes.
  • The financial ...

Actionables

  • You can advocate for safety by starting a petition for better injury reporting and prevention measures in cheerleading. Explain the importance of accurate injury data and call for mandatory safety workshops for coaches and athletes. Share the petition on social media and at local sporting events to gather support and raise awareness.
  • Create a simple, anonymous feedback tool for cheerleaders to report concerns. Use a free online survey platform to set up a questionnaire where athletes can report unsafe practices or abuse without fear of stigma. Distribute the link to local cheer squads and encourage them to share their experiences.
  • ...

Get access to the context and additional materials

So you can understand the full picture and form your own opinion.
Get access for free

Create Summaries for anything on the web

Download the Shortform Chrome extension for your browser

Shortform Extension CTA